The calculator determines Philip Morris International’s potential value based on separately valuing its cigarettes and smokeless businesses.

The main inputs are the valuation multiple for traditional cigarettes and growth assumptions for the smokeless unit.

The calculator estimates 10 years’ operating profit less capex and tax and a terminal value for the smokeless business, then discounts the results back to generate a present value.

Combined with the calculated value of the cigarette unit, that gives an upside or downside relative to PMI’s current market value.

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